Regional banking company First Citizens BancShares (NASDAQGS:FCNC.A) reported Q3 CY2025 results beating Wall Street’s revenue expectations, but sales were flat year on year at $2.43 billion. Its non-GAAP profit of $44.62 per share was 7.5% above analysts’ consensus estimates.
Is now the time to buy First Citizens BancShares? Find out by accessing our full research report, it’s free for active Edge members.
First Citizens BancShares (FCNCA) Q3 CY2025 Highlights:
- Net Interest Income: $1.73 billion vs analyst estimates of $1.71 billion (3.5% year-on-year decline, 1.2% beat)
- Net Interest Margin: 3.3% vs analyst estimates of 3.2% (4.8 basis point beat)
- Revenue: $2.43 billion vs analyst estimates of $2.38 billion (flat year on year, 2.1% beat)
- Efficiency Ratio: 61.3% vs analyst estimates of 58.8% (247.2 basis point miss)
- Adjusted EPS: $44.62 vs analyst estimates of $41.49 (7.5% beat)
- Tangible Book Value per Share: $1,629 vs analyst estimates of $1,618 (8.2% year-on-year growth, 0.7% beat)
- Market Capitalization: $22.36 billion
Company Overview
With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNC.A) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, First Citizens BancShares grew its revenue at an incredible 40.5% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. First Citizens BancShares’s annualized revenue growth of 6.9% over the last two years is below its five-year trend, but we still think the results were respectable. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, First Citizens BancShares’s $2.43 billion of revenue was flat year on year but beat Wall Street’s estimates by 2.1%.
Net interest income made up 70.7% of the company’s total revenue during the last five years, meaning lending operations are First Citizens BancShares’s largest source of revenue.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
First Citizens BancShares’s TBVPS grew at an incredible 36.7% annual clip over the last five years. TBVPS growth has recently decelerated to 12.1% annual growth over the last two years (from $1,297 to $1,629 per share).
Over the next 12 months, Consensus estimates call for First Citizens BancShares’s TBVPS to grow by 5.6% to $1,720, mediocre growth rate.
Key Takeaways from First Citizens BancShares’s Q3 Results
It was encouraging to see First Citizens BancShares beat analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $1,744 immediately after reporting.
Is First Citizens BancShares an attractive investment opportunity at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
